Thursday, December 20, 2007

investment strategy, set to self destruct

For the past 3 quarters I've bought shares in Research in Motion a day or two before they announce their earnings. The previous 3 times this has proved a very profitable strategy as RIM has met or exceeded expectations and increased guidance going forward.

Yesterday I did the same. I basically emptied out the investment account and poured everything into Research in Motion at $101.50 on the Toronto Stock Exchange. Before I made the purchase though I got the feeling that maybe I was making a mistake. Maybe the pattern that I have been taking advantage of the previous 3 quarters is gonna reverse and fuck me over.

Research in Motion announce their numbers after the bell today, so if they miss, in my opinion, the stock will open at least $5-$10 below today's close depending on forward looking guidance. I dont necessarily think they will miss expectations for this quarter but I think the possibility of a sell-off is real even if they hit their numbers but dont provide a large ramp up in expectations going forward.

However, the upside potential, I'm thinking, is 10%-20% within a few days if RIM hits or beats their numbers and increases guidance, so.... I'm all in.

7 comments:

Franki said...

No speeakee engrish.

nobich said...

You are a brave brave man (sigh)

IDigHootchAndCootch said...

franki - I'll translate. Up over 4% yesterday and almost for sure another good day today = I can continue my whiteboy charade of being a badass for a little longer

nobich - there is a fine line between bravery and stupidity that I cross more often than not. However in this case it looks like it may have worked out for me. Thanks.

Franki said...

excerrent!

2 Dollar Productions said...

Hootch. Here's to kicking stock market ass in 2008. Enjoy New Years.

Yo Momma said...

I agree with nobich. You are brave.
I don't know how you do it. I couldn't even bring myself to start I was so scurred.

That's why I gots the vaginer and you gots the balls that scrape the ground no?

HAPPY NEW YEAR Hootch!

IDigHootchAndCootch said...

$2 - All the best and happiness to you and your family, brother.

yo momma - balls and no brains. Most of it is luck. Hope you and the fam have a successful, healthy and happy 2008.